Finance · Free tool
Atal Pension Yojana Calculator
APY is a govt-backed pension for unorganised-sector workers. Choose a target monthly pension (₹1,000 to ₹5,000) and we'll show the monthly premium required from your current age until 60.
APY entry age range: 18–40.
How it works
The Atal Pension Yojana is managed by PFRDA and routed through your bank's savings account via auto-debit. Premiums are fixed by entry age and target pension using the published PFRDA chart — earlier you start, lower the monthly outflow. After 60, the pension is paid to the subscriber for life, to the spouse on death, and the accumulated corpus to the nominee. APY is open to any Indian aged 18-40 with an Aadhaar-linked bank account; income tax payers were barred from joining after Oct 2022.
Worked example
A 25-year-old kirana shop assistant in Lucknow opting for ₹5,000 monthly pension pays ₹376 per month for 35 years — total outlay ₹1.58 lakh, which builds a corpus of ~₹8.5 lakh by 60. The same ₹5,000 pension at age 40 entry costs ₹1,454 per month — nearly 4× higher — for a total outlay of ₹3.49 lakh over just 20 years.
When to use this
- Comparing APY against NPS Tier-I for low-income / unorganised-sector workers
- Planning auto-debit cash flow alongside an SSY or PPF account
- Confirming the upgrade premium when raising target pension from ₹1k to ₹5k mid-tenure
For higher-income workers, compare with our NPS calculator or read about NPS Tier-I for a more flexible alternative.
FAQ
Who is eligible for APY?
Indian citizens aged 18-40 with a bank savings account and active mobile number. Income tax payers are not eligible (added in 2022 — only non-tax-payers can newly enrol).
Can I increase or decrease my pension amount later?
Yes, once per year (April). You can move between the ₹1k–₹5k pension slabs by adjusting your premium accordingly. The premium is debited monthly from your savings account.
What happens if I miss premium payments?
After 6 months of missed payments, the account is frozen; after 12 months, deactivated; after 24 months, closed. Penalty for delay: ₹1-10/month of missed contribution. Pay arrears to revive within the freeze window.